09-13-2022 Resolution No. 11996Resolution No. 11996 1
RESOLUTION NO. 11996
RESOLUTION APPROVING LOAN DOCUMENTS
RELATED TO LIVABLE COMMUNITIES DEMONSTRATION
GRANT FROM METROPOLITAN COUNCIL FOR
MINNESOTA INDEPENDENCE COLLEGE AND
COMMUNITY
WHEREAS, Minnesota Independence College and Community, a Minnesota
nonprofit corporation (the “Redeveloper”), owns the property located at 2000, 2006, and
2018 West 76th Street and 7532 Morgan Avenue South, Richfield, Minnesota (the
“Redevelopment Property”) and proposes to construct on the Redevelopment Property a
building with approximately 70 affordable housing units and office and classroom space
(the “Project”); and
WHEREAS, in order to assist with the costs of the Project, the City, on behalf of
the Redeveloper, applied for and received a Livable Communities Demonstration
Account (LCDA) grant (the “LCDA Grant”) from the Metropolitan Council (“Met Council”)
in the total sum of $1,210,000, which will be allocated to the Project; and
WHEREAS, proceeds of the LCDA Grant are authorized to be used for eligible
costs of the Project (the “Grant-Eligible Activities”), as described, along with other terms
and conditions of the LCDA Grant, in the Livable Communities Demonstration Account
Grant Agreement (the “Grant Agreement”) which was previously approved and
executed by the City and the Met Council; and
WHEREAS, the City intends to loan the proceeds of the LCDA Grant to the
Redeveloper to provide financing for the Grant-Eligible Activities pursuant to a Loan
Agreement (the “Loan Agreement”) proposed to be entered into between the City and
the Redeveloper; and
WHEREAS, to secure the repayment of the portion of the loan of the proceeds of
the LCDA Grant which will be used by the Redeveloper to reimburse a portion of the
cost of purchasing the Redevelopment Property located at 7532 Morgan Avenue South,
Richfield, Minnesota in the amount of $400,000 (the “Land Loan”), the Redeveloper will
execute and deliver to the City a Combination Mortgage and Security Agreement (the
“Land Loan Mortgage”), providing the City with a secured interest in the mortgaged
property; and
WHEREAS, the City will satisfy the Land Loan Mortgage once the Project has
been completed and receives a Certificate of Occupancy from the City; and
WHEREAS, there have been presented before this City Council the Loan
Agreement and the Mortgage proposed to be entered into between the City and the
Redeveloper relating to the loan of the proceeds of the LCDA Grant to the Redeveloper.
Resolution No. 11996 2
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF RICHFIELD, as follows:
1. The Council approves the Loan Agreement and the Mortgage (together, the
“Agreements”) in substantially the forms on file. The Mayor and the City
Manager are hereby authorized and directed to execute and deliver the Loan
Agreement. All of the provisions of the Agreements, when executed and
delivered as authorized herein, shall be deemed to be a part of this resolution
as fully and to the same extent as if incorporated verbatim herein and shall be
in full force and effect from the date of execution and delivery thereof. The
Agreements shall be substantially in the forms on file with the City which are
hereby approved, with such omissions and insertions as do not materially
change the substance thereof, or as the Mayor and the City Manager, in their
discretion, shall determine, and the execution thereof by the Mayor and the
City Manager shall be conclusive evidence of such determination.
2. The Mayor and the City Manager are hereby authorized and directed to
execute other agreements and certificates deemed necessary to carry out the
intentions of the Agreements and this resolution.
3. This resolution shall be effective from and after the date hereof.
Adopted by the City Council of the City of Richfield, Minnesota, this 13 th day of
September 2022.
Maria Regan Gonzalez, Mayor
ATTEST:
Kari Sinning, City Clerk